Following an urgent bulletin that 7digital needs roughly $5.7 million to avoid bankruptcy, the company is now announcing changes to its board.
Insert ‘rearranging deck chairs on the Titanic’ quip here.
Amidst some heavyweight financial pressures, 7digital Group is now reshuffling things at the top. The company has announced that Tamir Koch has joined as a non-executive Chair. David Lazarus joins as a non-executive Director, with both appointments taking immediate effect.
Mark Foster will cease to act as interim Chair and will continue as a non-executive Director.
Tamir Koch currently serves as president of eMusic.com, an online music and audiobook store. The brand started in 1998 and became an important player in the early-2000s indie download scene, though these days, the company has been struggling to launch a viable blockchain-based concept. And of course, eMusic’s download-based indie music model is facing some serious competitive and consumer headwinds.
Tamir’s recent accomplishments include leading the eMusic Blockchain Project. The eMusic Blockchain project takes a decentralized approach to music distribution and rights management.
David Lazarus spent six years at Lloyds of London as a Lloyds broker and currently serves as Executive Director of the RAM Hand-to-Hand Couriers Group. The RAM Group operates 40 hubs with a fleet of 1,700 delivery vehicles in South Africa.
John Aalbers — CEO of 7digital — says he’s happy to see the new members of the board. Each brings valuable experience that he believes will assist 7digital’s vision on “executing our new company strategy.”
But what is that strategy, exactly? And can it be executed before this company goes ‘poof’?
Tamir Koch says he believes 7digital may be the perfect partner to help realize his eMusic Blockchain project.
“I envision blockchain as the way to align metadata within the industry, organize direct royalty payments, and create all-new economic models between fans and artists. I aim for 7digital to be at the forefront of those developments.”
Tamir says adding blockchain distribution technology will give 7digital access to the direct-to-fan market. That market is arguably one of the fastest-growing markets in the music industry.
Whether 7digital will remain an ongoing concern into 2020 remains a speculative bet. In late June, the company issued a dire warning relating to the likelihood of an upcoming bankruptcy, with a drop-dead date of July 31st to receive financing in the range of $5.7 million. Tamir himself offered to pony a portion of that tranche, though we’re unclear how much has been committed.